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Yahoo to buy Tumblr for a cool billion on Monday

May 18th, 2013

Strong rumors are surfacing that Yahoo will be buying social media site Tumbler.com on Monday for about 1.1 billion dollars.   Unless Facebook owner Mark Zuckerberg takes the advice of Silicon Valley mini mogol Jason Calcanis (and he won’t), it would seem this deal is probably going to go through.

Is this as great a move for Yahoo as Jason C seems to think?    I’d say sure if it shakes Yahoo into a more appropriate roll as a key player in the online social media space.   Despite massive amounts of activity and traffic, Yahoo’s been in Google’s shadow pretty much as along as Google’s been around to beat Yahoo like a rented mule – and beat them at pretty much everything they’ve both tried to do.   Flickr is an exception to this, and perhaps Mayer’s gameplan will be to aquire projects that can give Google a run for the big advertising money in various venues.    Could Mayer even have her eyes on search?    Yahoo threw in that towl long ago, but Microsoft’s Bing seems to bounce back into the behemoth’s  online strategy every few years.   Bing’s quality is comparable to Google’s, so look for something interesting to happen with a Yahoo Microsoft partnership (or aquisition of YHOO by MSFT, as should have happened years ago when Microsoft offered to buy YHOO for about $31 per share, far above Yahoo’s curent valuation).     New CEO Marissa Mayer was exactly what the Yahoo doctor ordered – somebody who will take calculated risks and has an intellectual and competitive incentive to succeed where so many others have conspicuously failed.

 

All Things D appears to be the site that broke this story:  http://allthingsd.com/20130517/yahoo-board-to-meet-sunday-to-consider-1-1-billion-all-cash-deal-to-acquire-tumblr/

Disclaimer:  I own YHOO stock

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